Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
This week in fashion: Shares of one major luxury conglomerate slumped, while another luxury retailer saw a profit boost.
LVMH share price drops
The stock price of one of the biggest luxury conglomerates in the world, aka LVMH, just slipped as much as 6.5% after its Q2 sales grew just 1% YoY to 21 billion euros, missing analysts’ estimate of 21.6 billion euros. The report came amid a consumer spending slowdown in China.
Why this matters: LVMH has been an outlier in a sea of luxury brands that have been impacted by a sales slump. Even Kering, one of its largest competitors, has been struggling with dwindling sales numbers. And much like other conglomerates and fashion labels, LVMH has finally fallen victim to a drop in profits in Asia, indicating that things are tough for pretty much everyone.
Moncler profits soar
And while other brands struggle, things are looking up at Moncler, which surpassed analysts’ estimates, with revenues up 11% in H1. The luxury Italian label reported an operating profit of 259 million euros in the first half of 2024, up from an estimate of 247 million euros.
Why this matters: Unlike many other brands, Moncler has managed to sustain shopper interest. In fact, while other luxury retailers have cited reduced consumer spending in Asia as the primary reason for sales slumps, Moncler reported strong sales numbers in Japan and China.
Nike appoints new CIO
Nike has a new CIO: former Salesforce executive Cheryan Jacob. Jacob, who had previous stints at Microsoft and Flexport, “will play a key role in delivering on our priority of simplifying, standardizing and modernizing our platforms,” CTO Muge Erdirik Dogan shared with employees in a memo, Bloomberg reported.
Why this matters: The appointment comes on the heels of falling sales, as Nike struggles to keep cost-conscious consumers engaged. In its Q4 earnings report last month, the retailer predicted a sales drop of ~10% this quarter as it slashed its full-year guidance.